how to start

[CBlandscaping]

Im not sure if this is in the right place or not but i was wondering how i should start a small excavation company, like doing bobcat and mini excavator work, and what i should consider buying. Im 18 yrs old and i have been mowing lawns for about 5 years now and plowing this past winter, and iv had a job working construction for the past 2 years. Im currently going to collage for a degree in construction managment and would one day like to be a general contractor. Im just looking for advice on how i should get started, and how other people did.

[gammon landscaping]

read my thread i think now is probablly a bad time to start, things are slowing down and equipment is a big ticket item.....think long and hard about it

[murray83]

Most insurance outfits won't insure you with 1 million in liability at your age,I'm 23 with a older backhoe and older plow truck and pay $2000 a year just in insurance.

I agree sit down and do the math as this is nothing like mowing lawns.I say get 5 more years experience as an operator before even getting a business number and insurance.

[thebobcatkid86]

All I can tell ya is Good Luck. To elaborate on murrays post unless you can afford to be self-insured(multi-millionaire) or do the bad thing like I did, and work for friends (who have a mutual understanding that no one sues eachother) then dont bother. I saved a couple of years (from 14 -17) working in interior construction and home renovation and bought a Bobcat and trailer at 18. Since I bought it I have made more money PAINTING HOUSES IN FLORIDA for 3 weeks for some friends of mine (thats another story) than I have in my own operators seat. I am now into my 3rd month of my 20th year on this planet. Lately I have been thinking of seeing if this heavy highway const. co. still has a job opening or going to school to be a landscaper or construction manager. Im not trying to be a bringdown, really Im not, Im hoping to make some good money this year finally but who the hell knows. Plus, I know Ive watched enough 'This Old House' to know that most of those northern east coast states are, some of the biggest pains in the a$$ when it come to rules and regs. reguarding contractors.

[CBlandscaping]

Thank you to everyone who has replied im planning on keeping a job working for someone else cause i know there is always more to learn, but is it worht trying to start somehting on the side even if its renting equipment and doing work for people i know so i dont need insurance?

[dozerman21]

My advice would be to get on with a company and learn what you can, and save what you can. Don't jump into anything too soon. You'll know when the time is right. A machine payment can either be a monthly bill that you figure into your job estimates, or it can be a small business eliminator. You need to have the work for it. Get your degree first. You can't go wrong having that fancy piece of paper if you need it. I would concentrate on that, maybe while working in the field in the summer or free days that you have. You might even be able to do some kind of internship to help you get your foot in the door down the road.

[gammon landscaping]

you always need it, every ones your friend when you are filling out the bill but when the tree total's thier house you are the bad guy

[Scag48]

Most insurance outfits won't insure you with 1 million in liability at your age,I'm 23 with a older backhoe and older plow truck and pay $2000 a year just in insurance.


I'm insured for $1 million in liability for $350 a year for lawn maintenance, doesn't cover any landscaping/excavation, but I know he could get insurance. We pay $2000 a year for $2 million in coverage for landscaping, but once we added excavation on there we were in the $4500 a year range.

[bobbyg18]

im insured for 1 million a year for about $1000 per year but i cant dig down more than 4 feet...

[murray83]

With limited experience and being just 18 I don't think many would take a gamble on him.I started with my insurance 2 years ago when I started my company and even then they were iffy but with no screw ups (thank god) they didn't ask a word when I refiled last year.

In his first year alone the insurance could sink him at $2000+ a year.

[RockSet N' Grade]

CBLandscaping........this excavating, grading, equipment thing is an expensive adventure. you are doing the right thing by researching and asking questions to get a handle on it. if you feel passionate about one aspect or another of this type of business, i would encourage you to shoot for the goal of being your own boss........how you get there varies for everyone and we all fall down and skin our knees in the process, but for me, there is nothing better (or worse on a bad day) than being my own boss. i find it more creative, challenging, worrisome, i like juggling all the balls in the air at the same time and i like the ability to have some choice in my own destiny........i would suggest that it is not a road for everyone.........but it sure is a great way to go.

[YellowDogSVC]

Im not sure if this is in the right place or not but i was wondering how i should start a small excavation company, like doing bobcat and mini excavator work, and what i should consider buying. Im 18 yrs old id.


First, read what everyone has to say about their personal stories, then work for someone else for while.. don't just jump in and buy equipment.. it can ruin your credit forever if you aren't ready. Rent what you need to work to start and figure out what services you are good at and what you can do to make a living. Research, read, and learn...never stop learning.
If I only knew then what I know now. I started off mowing lawns with a DR. and mowing fields with a tractor. I now clear land and chip trees and grind brush. Long, hard road to get here and the learning curve was huge and I still have nightmares about equipment failures along the way, operator errors, etc. If I took all the money I spent on repairs, trucks, and equipment, I would have been better off putting it into real estate! :)
Seriously, it is a tough business and though I have made it 10 years, there is no guarantee of a future for myself or my family but keeping up with trends and continuing to evolve is a good way to grow. Maybe you could capitalize on your lawn mowing skills and learn landscaping and/or right of way upkeep to start. Equipment is very expensive if you want to be able to compete for the high end jobs. Insurance is ridiculously high. Collecting sales tax, billing, estimating, and repairs round out my weekends after a long week of hard work. I spend my evenings trolling sites like these and reading and would suggest you spend time reading success stories and learning from those who have made it. It never ends but I can't and wouldn't give it up as I love the hard work. I graduated with a BS in management...but a desk job didn't appeal to me and I wish there had been sites like these for me to learn from. I did it the hard way and wasted a lot, A LOT of time and money on the learning curve. You can learn from others by asking questions and reading what they have to say. At 18, you are young enough to work the hard way but why do that if you don't have to?
Best of luck! Wish I knew what I wanted to do at that age!

[RockSet N' Grade]

YellowDog.......I was doing the math the other day on my equipment repairs and expenses and related stuff and had the same passing moment of clarity myself about the amount of money I have spent on iron and what it could have done in real estate.

[AWJ Services]

it can ruin your credit forever if you aren't ready.

This is very important and very true.
It will not be forever but it will take a min of 5 years too recover.

If you establish a LLC or Corp then it will shield you personally.
Even if you are a Sole Proprietor and get your loans in the business name it will shield your personal credit somewhat.
"Personal Guarantees" are something creditors have started asking for lately.
I am strongly against them.
Business credit cards all have a Personal Guarantee(read the fine print) and there is no way for a small company too circumvent that.

Business Plan

You do have one don't you?If you do not understand the relevance of this then you are not ready too be in business.
The mismanagement of the business will more than likely be the reason it would fail than lack of work.
Operating the machinery is the easy part.


Risks!

You will have too take them.
Some people are cut out for it some are not.
That is why some people are self employed and some are not.
Part of being able too validate an equipment purchase is having a quality business plan in place.


For example

I am expanding into the Septic business this year.
I have no septic business as of yet.
I will need experience,work and the equipment too perform the work.
I can finance the equipment and have too get certified by taking a test.
I spent some time last year working for free with a septic company too get some experience.
What about the work?
If I cannot get it then I will fail unless the rest of my business can support this new venture which is not a good long term business decision.

My Plan

Drain Field repair is becoming a big business here.
It pays well above new installation .
Most pumping companies do not do major line repair.
Most septic line repair companies do not do anything other than line repair and new system installation.

I can offer a turn key repair from the line repair too returning there lawn too it's previous undisturbed state.(including damage too irrigation)
I have one large Pumping company already secured for referrals through a commission program.
I have a few good Builders that will give me some new installation work.
A backhoe would be better for new installations but will be a hindrance for repairs.
I settled am a mini ex.
I think it will add versatility over the backhoe.
If this was my primary business I would have a hard time justifying this venture because on paper it will not support me financially.
As an addition to my primary business it will however make needed additional income above and beyond the financial burden it will bring.
Kinda long winded .

I am no expert in business ,but I have struggled along for 15 or so years of self employment.
I learned how too do it the wrong way.:)

Your education should help you make good decisions.



I was doing the math the other day on my equipment repairs and expenses and related stuff and had the same passing moment of clarity myself about the amount of money I have spent on iron and what it could have done in real estate.


I agree.
There is big money too be made in Real Estate.
But without hindsight would you have made the right money making decisions?
There are rich Real Estate people just as there are rich Excavating company owners.


CBLandscaping........this excavating, grading, equipment thing is an expensive adventure. you are doing the right thing by researching and asking questions to get a handle on it. if you feel passionate about one aspect or another of this type of business, i would encourage you to shoot for the goal of being your own boss........how you get there varies for everyone and we all fall down and skin our knees in the process, but for me, there is nothing better (or worse on a bad day) than being my own boss. i find it more creative, challenging, worrisome, i like juggling all the balls in the air at the same time and i like the ability to have some choice in my own destiny........i would suggest that it is not a road for everyone.........but it sure is a great way to go.


The best yet.
Sums it up for me as well.